Note 10 - Net Income Per Common Share

6 Months Ended

Feb. 28, 2015

10. NET (LOSS) INCOME PER COMMON SHARE

Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding. Diluted net (loss) income per share assumes the exercise of stock options using the treasury stock method, if dilutive.

The following is a reconciliation of the earnings (loss) per share computation:

	Three Months Ended					Six Months Ended
Numerators:	February 28, 2015			February 28, 2014		February 28, 2015		February 28, 2014
Net (loss) income attributable to NTIC	$	(128,644	)	$	1,025,044	$	876,621	$	1,883,630

Denominator:
Basic – weighted shares outstanding		4,522,514			4,434,837		4,516,311		4,434,770
Weighted shares assumed upon exercise of stock options		-			144,766		139,481		131,333
Diluted – weighted shares outstanding		4,522,514			4,579,603		4,655,792		4,566,103
Basic earnings (loss) per share:	$	(0.03	)	$	0.23	$	0.20	$	0.42
Diluted earnings (loss) per share:	$	(0.03	)	$	0.22	$	0.19	$	0.41

The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings (loss) per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings (loss) per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings (loss) per share. Excluded from the computation of diluted earnings per share for the three months ended February 28, 2015 were all options outstanding to purchase 263,734 shares of common stock, due to the Company’s net loss in the period.

- Definition

The entire disclosure for earnings per share.

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